EUR - Euro rates, news, and tools Euro History The central bank in Europe is called the European Central Bank (ECB). Currently, 17 EU member states have adopted the Euro. It is the second-most traded currency on the forex market, after the US Dollar , and also a major global reserve currency. Other common names for the Euro include Yoyo (Irish English), Leru (Spanish), and Ege (Finnish). Introduction of the Euro On January 1, 1999, the Euro (EUR) was introduced as an account currency, replacing the European Currency Unit at par. The European Currency Unit was a theoretical basket of currencies rather than a physical currency in and of itself. Initially, eleven of the countries in the European Economic and Monetary Union replaced their own currencies with the Euro: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Greece followed suit in 2001, Slovenia in 2007, Malta and Cyprus in 2008, and Slovakia in 2009. On January 1, 2014, the Latvian Lats will also be replaced by the Euro.

Use of the Euro outside the EU A number of sovereign states that are not part of the European Union have since adopted the Euro, including the Principality of Andorra, the Principality of Monaco, the Republic of San Marino, and the Vatican City. The Euro is also used in many territories, departments, and sovereign states of Euro-zone countries, such as the Azores, Balearic Islands, the Canary Islands, Europa Island, French Guiana, Guadeloupe, Juan de Nova, the Madeira Islands, Martinique, Mayotte, Reunion, Saint-Martin, Saint Pierre and Miquelon, to name just a few. The Euro is used as a trading currency in Cuba, North Korea, and Syria and several currencies are pegged to it. Currency 1 EUR = 30.1260 SKK 17-Jan-2009 The XE Currency Converter supports the above obsolete currencies; to make a conversion, type the name of the currency in the search box. Some old currencies are still physically convertible at special locations. For details, refer to the official ECB site listed in the Relevant Links section below.

Spelling and Capitalization The official spelling of the EUR currency unit is "euro", with a lower case "e"; however, the common industry practice is to spell it "Euro", with a capital "E". Many languages have different official spellings for the Euro, which also may or may not coincide with general use. Additionally, there are various nicknames for the currency including, Ege (Finnish), Pavo (Spanish), and Euráče (Slovak). Relevant Links For more information on the EUR, we encourage you to visit the links below, particularly the European Central Bank. These sites include recent news on the Euro as well as issues like implementation, spelling, legislation, and more. Welcome to the euro, farewell to the tolar Welcome to the euro, farewell to the tolar Speech by José Manuel González-Páramo, Member of the Executive Board of the ECB Euro Conference – Session: “The euro and the public at large” Ljubljana, 15 January 2007 Introduction Ladies and gentlemen, We have come here today to welcome the euro and to say farewell to the tolar, yesterday being the official end of the dual circulation period in Slovenia.

But let me first say what a great pleasure is for me to be here in Ljubljana at this conference, celebrating with you. It is indeed a historic occasion for Slovenia and for the other euro area countries. When covering such a broad topic as the title of this roundtable - “the euro and the public at large” – we inevitably have to think about the physical introduction of the euro. As the previous speakers have already said, looking back on the past two weeks, the euro cash changeover in Slovenia can truly be regarded as a success. A long chain of events and a whole series of activities paved the way for the quick and successful introduction of the new currency. I would like to consider these logistical aspects in the first part of my speech today. I would also like to review the information campaign, which helped to prepare the people of Slovenia for the euro and which accompanied the introduction of the euro banknotes and coins. Finally, in the light of previous experience, some of your fellow citizens here are bound to be worried about the effects of the cash changeover on prices.

I will come back to this later by reporting on the estimates of the impact of the cash changeover in 2002 as well as on recent developments with regard to expected, perceived and actual inflation in Slovenia prior to the launch of the euro. Logistics of the euro cash changeover in Slovenia Let me first compare the main aspects of the logistics of the euro cash changeover in Slovenia with those of 2002. In order to establish a smooth operation, the logistics had to be organised well in advance to allow the parties involved to ensure the wide availability of euro cash. For the cash changeover in 2002, some of the national central banks started to procure the required quantities of euro banknotes as early as three years prior to the introduction. Unlike them, Banka Slovenije has borrowed the euro banknotes required for the changeover from the Eurosystem stocks. This scenario was the most favourable option for the initial supply of banknotes, given the very short period of time between the decision to abrogate the derogation, i.e. the formal decision to introduce the euro in Slovenia, and the actual introduction of the currency.

The Oesterreichische Nationalbank performed, for geographical and logistical reasons, the physical delivery of the banknotes on behalf of the Eurosystem, based on a bilateral agreement. Banka Slovenije will pay back the ‘borrowed’ banknotes under the 2008 euro banknote production plan. As to the production of Slovenia’s euro coins, which, like the other euro area countries, include a national side, a public tender resulted in a contract being awarded to the Mint of Finland. As in the 2002 cash changeover, a crucial factor for the success of the euro launch in Slovenia was the frontloading and sub-frontloading of banknotes and coins to banks and other professional target groups (e.g. retailers, cash-in-transit companies and the cash-operated industry). To encourage these parties to become involved, a deferred debiting of the countervalue formed part of this agreement. A lead time of around two months[ 1 ] for the frontloading of coins and of about one month[ 2 ] for banknotes was required to ensure that sufficient cash would be widely available from 1 January 2007 and also to permit efficient transportation and logistics.

By the end of 2006, Banka Slovenije had frontloaded to banks 100% of the banknotes and coins needed. This meant that some 41 million banknotes, worth €772 million, and some 250 million coins, worth €83 million, had been delivered. 47% of these coins went into starter kits for retailers and for the general public. A comparison of these figures with the 2002 cash changeover is quite interesting, although of course the scale of the launch and some of the conditions were different: at that time, in volume terms, around 80% of the banknotes and 97% of the coins had been distributed to banks before 1 January 2002. As a direct service to the general public, the national central banks in the Eurosystem have taken measures to ensure that during the first two months of 2007 tolar banknotes, up to a value of €1,000 for any given party/transaction on any one day, can be exchanged into euro at par value in at least one location in their national territory.

Banka Slovenije will exchange tolar banknotes for an unlimited period and coins for 10 years. The other euro area countries made similar arrangements at the time of the 2002 cash changeover. Ultimately, the success of the launch of the euro depends not only on the cooperation of the professional parties involved, but also on a willing and quick acceptance by the public. Their positive feedback in this respect tells its own tale. The smoothness of the overall process has also been confirmed by the Slovenian media, which has reported on the cash changeover in a positive way. The preparatory work was done and the supply of euro banknotes and coins was planned and completed early enough to ensure there was no shortage of euro cash. No adjustments were needed to the planned cash changeover scenario, and this confirms the precise planning done by all the parties involved. The technical preparations too went according to plan: the conversion of of cash dispensers and point-of-sale terminals was completed within 24 hours. Given that around 70% of banknotes are put into circulation via the dispensers, their quick adaptation was a key factor in a smooth changeover.

Statistics reveal that cash withdrawals returned to their normal levels during the first week of 2007, clearly indicating a return to ‘business as usual’. The conversion of vending machines has also been completed during the past fortnight. 52 branches of commercial banks were open throughout the country on 1 and 2 January, which were public holidays here, to exchange tolar banknotes and coins into euro. Banka Slovenije was also open. These measures, along with the widespread pre-distribution of euro cash and the fact that retailers gave change only in euro, paved the way for a quick changeover. On the subject of speed, I’d like to give you an impressive indicator: 24 hours into 2007 the value of euro banknotes in circulation was higher than that of tolar banknotes. It took two weeks to achieve this at the aggregated Eurosystem level in 2002. Information campaign Any undertaking as enormous as a currency changeover needs to be preceded and supported by various communication activities. Information provided by the central bank or by the government has a stamp of authority that gives businesses time to plan for the conversion. Communication is also a tool that can shape public behaviour.

For example, it was clearly stated that tolar banknotes would not lose their value after the changeover – this announcement minimised the risk of bottlenecks in the cash supply. Obviously, communication should also focus on the product itself – the euro banknotes and coins. This is where the ECB played a supporting role. I would like to say a few words about that now. In its communication on euro banknotes and coins, the European System of Central Banks has adopted a ‘semi-centralised’ approach. This means that communication activities which are more efficiently carried out, so to speak, ‘at the centre’ are performed by the ECB in coordination with the national central banks. For instance, the ECB prepares and prints information material, while the respective national central bank arranges for its distribution. The general contents and design of the material produced for Slovenia are the result of detailed discussions and exchanges of best practices among working groups in the European System of Central Banks. The working groups consist of central bank experts in the fields of communication and cash matters, such as banknote counterfeiting.

We have to bear in mind that communication should not only aim to make the public receptive to the new money but also, and above all, it should inform them in a comprehensible way about the appearance of their new banknotes and coins, and thus help them to distinguish between genuine and counterfeit banknotes. But how can we be certain that the information material will be favourably received? In order to ensure that the publications catch the public’s eye and that their messages are easily understood by different target groups, all elements of the publications underwent qualitative research in recent years. This involved a variety of focus groups, such as young people, pensioners, housewives, cashiers and others who were asked for their opinions on the publications, including the logo and slogan, and on the presentation of the security features of euro banknotes. They also commented on the use of colours and the pictures showing people in cash handling situations. The slogan “€ OUR money” had already been used in the 2002 information campaign. The slogan is thus an element of continuity, linking the new publications with the earlier ones. This “branding”, which is also achieved by a characteristic layout, gives the material a distinct identity and shows it has been produced by the European System of Central Banks.

Interestingly, the outcome of the research did not vary significantly from country to country. This allowed us to develop common guidelines for the design of the publications. The findings of the research were extremely helpful in the preparation of the information material; and some findings were unexpected. For example, it was interesting to learn that the public favours the colours blue and yellow, that is to say the colours of the European flag, to brand publications on the euro as “European Products”. Concerning pictures, people in everyday ‘cash handling’ situations were preferred to models or actors in artificial settings. In order to take account of cultural differences, a photographic database which shows cash users from – and in – different countries in Europe has been established. Accordingly, the publications for Slovenia show people from this country and aspects of its culture. Having a local touch clearly makes the material more acceptable. The research also showed that “less information can be better” and that more visuals are favoured. This means that readers should not be overwhelmed with detailed descriptions of all the security features. Accordingly, only four, or a maximum of five, prominent features are communicated in an easy-to-understand manner. Their descriptions are kept simple, yet sufficiently accurate: technical terms have been replaced by simpler descriptions, e.g.

“optically variable ink” is now expressed as “colour-changing number”. We have developed two sets of publications, one aimed at the public, with accessible vocabulary, and another one for professional cash-handlers with more comprehensive technical descriptions. In this context, we have produced a “Trainers Guide”, which helps in the training of cashiers in shops, banks and restaurants. The publication contains an interactive CD-ROM allowing users to explore the security features of the banknotes. Similar applications are also available on the ECB website. This interactivity is a popular element and was praised as being one of the best tools for checking if banknotes are genuine. This brings me to the “tool box” of the campaign, as we call the portfolio of the different publications that have been developed by the ECB, drawing on the many years of experience of the national central banks to communicate on the euro banknotes and coins. In the second half of 2006, the ECB provided various publications to Banka Slovenije. This material focused closely on the products – the euro banknotes and coins. They complemented publications produced by the Slovenian Changeover Board on other important aspects of the cash changeover.

The above-mentioned “Trainers Guide” and an abridged version for the trainees have been used in training sessions, a “public information leaflet” has been distributed to households in Slovenia by direct mailing and two different posters have been sent to businesses, chambers of commerce and banks. We have also produced a handy credit-card-size leaflet depicting the euro cash and its security features. It can be tucked into wallets for quick reference. A wider and targeted distribution of the information material was ensured by involving external multipliers. Already in the information campaign conducted prior to the cash changeover in 2002 we had a very positive experience cooperating with various associations and businesses. Slovenian associations and businesses have been actively targeting specific audiences, namely their clients, members or their staff and were supported by Banka Slovenije and the ECB, with these two institutions providing reproducible material. Impact of the cash changeover on prices in the euro area and recent developments in Slovenia Let me now move on to my last topic today. Can we expect the cash changeover to have a significant impact on prices? This is probably at the heart of the fears of some today in Slovenia.

Let me try to answer to this question by referring to the analysis conducted by the Eurosystem and by Eurostat as regards the introduction of the euro banknotes and coins in 2002. According to these studies, the cash changeover had a limited and only temporary impact on consumer prices in the euro area, although this effect may have varied across the euro area countries. The impact was most notable in the first half of 2002, mainly on prices in the services sector, while goods prices seem to have been less affected. Overall, the analysis suggests that the impact of the changeover on euro area HICP inflation in 2002 as a whole was at most 0.3 percentage point. There is also no evidence of any changeover effect on inflation beyond 2002. Of course, the situation in Slovenia is different to the euro area cash changeover in 2002 insofar as this time only one (small) country is affected which already had a stable exchange rate with the euro area. Thus a broad increase in prices in Slovenia would undermine its competitive position vis-à-vis the rest of the euro area.

This was different in 2002 as the whole of the euro area at that time introduced the new banknotes and coins. This would argue against a strong impact on prices in Slovenia. In any case, and beyond this short-term impact, the greater cross-border price transparency arising from the changeover to the euro should, over a longer period of time, increase competition and contain price pressures. One relevant issue here is the possibility of a gap emerging between actual inflation and that perceived by the public. Currently there is a close link between consumers’ inflation perceptions and actual inflation developments in Slovenia as provided by the European Commission’s survey. However, given the widening of the gap between actual and perceived inflation in the euro area after the euro adoption, there is a risk of such a gap also emerging in Slovenia. Inflation expectations started to increase and deviate gradually from actual HICP inflation developments as from the second half of 2005. This trend in Slovenia is similar to the divergence between expected and actual inflation in the euro area in 2001. A possible reason for the discrepancy between inflation expectations and actual inflation developments in Slovenia is a spill-over effect from the euro area consumers’ inflation perceptions after the euro cash changeover.

As I have just mentioned, in the euro area a significant and persistent gap between perceived versus actual inflation emerged after the introduction of the euro notes and coins in 2002. In order to minimise the impact of the cash changeover on inflation, the Slovenian authorities consulted their counterparts in the euro area extensively about their experiences relating to the euro cash changeover. Even though it is difficult to specify “best practice”, some elements have been widely agreed upon[ 3 ], and the Slovenian authorities (together with consumer associations) have taken action accordingly. In particular, they have organised a long and early dual pricing period, which started in March 2006; an early and extensive citizen information campaign; price monitoring teams; a short phase of dual-currency circulation: 2 weeks. Hence, the impact of the changeover on inflation should be even smaller than that observed in some other euro area countries. Of course, unusual and unjustified individual price increases could take place. In the face of this inappropriate behaviour, the sovereign consumers should react decisively to their right to choose providers, with the full backing from the Slovenian authorities and consumer associations. Conclusion Let me now conclude.

The introduction of euro cash in Slovenia represented a highly successful continuation of the 2002 cash changeover. The joint actions of, and cooperation between, all the main players – coordinated by Banka Slovenije and the Slovenian Government – have been of overwhelming importance. Commercial banks, security carriers and the cash-operated machine industry were closely involved in the preparations at an early stage. On this occasion, I should like to express my sincere gratitude to all the parties involved for their efforts. I want also to thank all the partners involved in the preparation and execution of the information campaign for their support and contribution in this historic and crucial step for Slovenia. And, of course, I would again like to very warmly welcome the people of Slovenia to the euro area. [ 1 ] The frontloading of euro coins started on 25 September 2006. [ 2 ] The frontloading of euro banknotes started on 29 November 2006. [ 3 ] Published in European Parliament resolution on enlargement of the euro zone Events What is ERM II? - European Commission European Commission Communicating on the euro What is ERM II?

The Exchange Rate Mechanism (ERM II) was set up on 1 January 1999 as a successor to ERM to ensure that exchange rate fluctuations between the euro and other EU currencies do not disrupt economic stability within the single market, and to help non euro-area countries prepare themselves for participation in the euro area. The convergence criterion on exchange rate stability requires participation in ERM II. Within the euro area, there is only one currency – the euro – but there are EU countries outside the euro area with their own currencies, and avoiding excessive fluctuations in their exchange rates with the euro or misalignments helps the smooth operation of the single market. It is ERM II that provides the framework to manage the exchange rates between EU currencies, and ensures stability. Participation in ERM II is voluntary although, as one of the convergence criteria for entry to the euro area, a country must participate in the mechanism without severe tensions for at least two years before it can qualify to adopt the euro. How does ERM II work? In ERM II, the exchange rate of a non-euro area Member State is fixed against the euro and is only allowed to fluctuate within set limits.

ERM II entry is based on an agreement between the ministers and central bank governors of the non-euro area Member State and the euro-area Member States, and the European Central Bank (ECB). It covers the following: A central exchange rate between the euro and the country's currency is agreed. The currency is then allowed to fluctuate by up to 15% above or below this central rate. When necessary, the currency is supported by intervention (buying or selling) to keep the exchange rate against the euro within the ±15% fluctuation band. Interventions are coordinated by the ECB and the central bank of the non-euro area Member State. Non-euro area Member States within ERM II can decide to maintain a narrower fluctuation band, but this decision has no impact on the official ±15% fluctuation margin, unless there is agreement on this by ERM II stakeholders. The General Council of the ECB monitors the operation of ERM II and ensures co-ordination of monetary- and exchange-rate policies. The General Council also administers the intervention mechanisms together with the Member State’s central bank.

A measure of sustainable economic convergence When a Member State enters the euro area, its central bank becomes part of the Eurosystem made up of the national central banks of the euro area and the ECB, which conducts monetary policy in the euro area independently from national governments. The consequence of this is that euro-area Member States can no longer have recourse to currency appreciation or depreciation to manage their economies and respond to economic shocks. For example, they can no longer devalue their currency to slow imports and encourage exports. Instead, they must use budgetary and structural policies to manage their economies prudently. ERM II mimics these conditions thereby helping non-euro area Member States to prepare for them. Successful participation in ERM II for at least two years is considered as confirmation of the sustainability of economic convergence and that the Member State can play a full role in the euro-area economy. It also provides an indication of the appropriate conversion rate that should be applied when the Member State qualifies and its currency is irrevocably fixed.

EU currencies included in the Exchange Rate Mechanism (ERM II) Denmark: the Danish kroner joined ERM II on 1 January 1999, and observes a central rate of 7.46038 to the euro with a narrow fluctuation band of ±2.25%. Greece: the Greek drachma joined ERM II on 1 January 1999, and observed a central rate of 353.109 to the euro with a standard fluctuation band of ±15%. On 17 January 2000, the central rate was revalued to 340.750. The Greek drachma left ERM II when Greece adopted the euro on 1 January 2001. Estonia: the Estonian kroon joined ERM II on 28 June 2004, and observes a central rate of 15.6466 to the euro with a standard fluctuation band of ±15%. Communiqué (60 kB) The Estonian kroon left ERM II when Estonia adopted the euro on 1 January 2011.

Lithuania: the Lithuanian litas joined ERM II on 28 June 2004, and observes a central rate of 3.45280 to the euro with a standard fluctuation band of ±15%. Communiqué (59 kB) The Lithuanian litas will leave ERM II when the country adopts the euro as of 1 January 2015 Slovenia: the Slovenian tolar joined ERM II on 28 June 2004, and observed a central rate of 239.640 to the euro with a fluctuation band of ±15% (Communiqué (60 kB) ). The tolar left ERM II when Slovenia adopted the euro on 1 January 2007. Cyprus: the Cyprus pound joined ERM II on 2 May 2005, and observed a central rate of 0.585274 to the euro with a fluctuation band of ±15% (Communiqué (47 kB) ). The Cyprus pound left ERM II when the country adopted the euro on 1 January 2008.

Latvia: the Latvian lats joined ERM II on 2 May 2005, and observes a central rate of 0.702804 to the euro with a fluctuation band of ±15%, but Latvia unilaterally maintains a 1% fluctuation band around the central rate. Communiqué (47 kB) . The Latvian lats has left ERM II when the country adopted the euro on 1 January 2014 Malta: the Maltese lira joined ERM II on 2 May 2005, and observed a central rate of 0.429300 to the euro with a fluctuation band of ±15%, but Malta unilaterally maintained the exchange rate of the lira at the central rate without fluctuation (Communiqué (51 kB) SIT | Slovenian Tolar | OANDA Slovenian Tolar Note: This currency has been replaced by the Euro . Overview The Slovenian Tolar was the currency of Slovenia from 1991 until the introduction of the Euro on January 1, 2007.

The name Tolar comes from the Thaler, a silver coin used throughout Europe for hundreds of years whose name lives on in currencies such as the “Dollar.” The Tolar was partitioned into a hundred statins (cents). Banknotes were in denominations of 10, 20, 50, 100, 200, 500, 1,000, 5,000, 10,000 tolarjev; coins in 10, 20, 50 stotinov and 1, 2, 5, 10, 20, 50 tolarjev. The Tolar was replaced by the Euro on January 1, 2007 at a rate of 239.640 Tolars = 1 Euro. Economy Slovenia has a developed economy and is per capita the richest of Slavic states, thanks to its location at the crossroads of several major trade routes, its well-educated workforce, and its well-developed infrastructure.

Since the introduction of democracy in September, 1989, Slovenia experienced one of the most stable political and economic transitions in Central and Southeastern Europe. It became the first transition country to graduate from borrower status to donor partner at the World Bank in March 2004. Almost two thirds of Slovenians are employed in services, and over one third in industry and construction. Slovenia's economy is highly dependent on foreign trade, mainly towards Germany, Austria, Italy, and France. In 2009, the global economic crisis reduced Slovenia’s exports and industrial production, causing its economy to contract and unemployment to rise. Growth has resumed, but unemployment remains high. History The Slovenian Tolar was introduced on 8 October 1991. It replaced the 1990 convertible version of the Yugoslav Dinar at par. On 28 June 2004, the Slovenian Tolar was pegged to the Euro in ERM II (the European Union exchange rate mechanism). Slovenia became the first 2004 European Union entrant to adopt the Euro (on January 1, 2007).

Symbols and Names Stotin = 1/100 of a Tolar Denominations Bills: 10, 20, 50, 100, 200, 500, 1,000, 5,000, 10,000 tolarjev Coins: 10, 20, 50 stotinov; 1, 2, 5, 10, 20, 50 tolarjev Countries Using This Currency SITE MAP © 1996 - 2017 OANDA Corporation. All rights reserved. "OANDA", "fxTrade" and OANDA's "fx" family of trademarks are owned by OANDA Corporation. All other trademarks appearing on this Website are the property of their respective owners. Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature.

We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks. Refer to our legal section here . Financial spread betting is only available to OANDA Europe Ltd customers who reside in the UK or Republic of Ireland. CFDs, MT4 hedging capabilities and leverage ratios exceeding 50:1 are not available to US residents. The information on this site is not directed at residents of countries where its distribution, or use by any person, would be contrary to local law or regulation. OANDA Corporation is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association . No: 0325821. Please refer to the NFA's FOREX INVESTOR ALERT where appropriate. OANDA (Canada) Corporation ULC accounts are available to anyone with a Canadian bank account. OANDA (Canada) Corporation ULC is regulated by the Investment Industry Regulatory Organization of Canada (IIROC), which includes IIROC's online advisor check database ( IIROC AdvisorReport ), and customer accounts are protected by the Canadian Investor Protection Fund within specified limits.

A brochure describing the nature and limits of coverage is available upon request or at . OANDA Europe Limited is a company registered in England number 7110087, and has its registered office at Floor 9a, Tower 42, 25 Old Broad St, London EC2N 1HQ. It is authorised and regulated by the Financial Conduct Authority , No: 542574. OANDA Asia Pacific Pte Ltd (Co. Reg. No 200704926K) holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore and is also licenced by the International Enterprise Singapore. OANDA Australia Pty Ltd is regulated by the Australian Securities and Investments Commission ASIC (ABN 26 152 088 349, AFSL No. 412981) and is the issuer of the products and/or services on this website. It's important for you to consider the current Financial Service Guide (FSG) , Product Disclosure Statement ('PDS') , Account Terms and any other relevant OANDA documents before making any financial investment decisions. These documents can be found here . OANDA Japan Co., Ltd.

First Type I Financial Instruments Business Director of the Kanto Local Financial Bureau (Kin-sho) No. 2137 Institute Financial Futures Association subscriber number 1571. Trading FX and/or CFDs on margin is high risk and not suitable for everyone. Losses can exceed investment. Spanish Currency - Spanish Money History: The Peseta | don Quijote Read the Spanish version The euro was introduced as money in Spain in 2002. The majority of the European Union members adopted this new currency to make traveling between countries easier, since the currency for Spain is the same in most EU countries. The euro is the official currency of 16 (of 27) member states in the EU: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Spain and Estonia (due to join in 2011).

The euro consists of 7 bank notes with values of: 500€, 200€, 100€, 50€, 20€, 10€ and 5€, and 8 coins with values of: 2€, 1€, 0.50€, 0.20€, 0.10€, 0.05€, 0.02€ and 0.01€. On the denomination side of the Spanish currency, the image is the same for all European countries, but the image on the face side of the coins vary according to which country the coin came from. Spanish Currency History Spain’s currency history prior to the euro consisted of the Spanish Real, the Spanish Escudo, and the Spanish Peseta. Most of the changes in Spanish money occurred due to conceptual shifts, when certain denominations of an old Spanish currency began to be mentioned with words that would later be used to describe what would eventually become the new currency in Spain .

The Spanish real, meaning Royal, was the Spanish currency for several centuries from the mid-14th century until 1864, when the escudo replaced the real in the Spanish economy. The real was introduced by King Pedro I of Castile as a standardized coin with a value of 3 maravedíes (Iberian gold and silver coins). Eight reales was equivalent to one silver peso, or Spanish dollar, which would be introduced as Spanish money the same year. The Spanish dollar was used in American and Asia and Spanish coinage became popular during this period in international trade and commerce. The Spanish escudo referred to two different types of Spanish currency denominations: silver and gold. The first Spanish escudo was a gold coin and was introduced in 1566 which continued to be issued until 1833. The Silver escudo was used from 1864-1869 until it was replaced by the new Spanish currency called the peseta. Each escudo represented a certain value of reales, the previous currency of Spain. Before the euro became the main currency of Spain, the money in Spain was called pesetas.

Pesetas were in use from 1869 until the implementation of the euro in 2002. The word peseta comes from the word peceta, a diminutive of the Catalan word peça, meaning “a small piece.” By the 15th century the word referred to a silver coin and by the Middle Ages the word was used to describe the value of two reales (previous Spanish currency). In an effort to unite the currency in Spain, a decree was issued in October of 1868 when Spain joined the Latin Monetary Union that stablished the peseta as the national Spanish currency with the intention of strengthening the economy, business and promoting a stable financial system. Spanish Economy When Spain was accepted into the EU, it generated increased foreign investment and market liberalization in the Spanish economy. Spain was the principal beneficiary of the EU’s “harmonization fund” which provided support to the poorer EU nations to reduced economic disparities. A number of EU-funded projects during this time propelled the economy in Spain, including: the construction of airports, highways, and high-speed rail lines. After a small economical downturn in the mid-1990s, the Spanish economy entered into a period of growth.

The Spanish economy is one of the top 15 economies of the world and top 5 European economies. Spain’s economy had above average GDP growth for nearly 15 years, but began to slow in late 2007. By the second quarter of 2008, the economy in Spain had entered into recession (along with most of the world). The economic situation in Spain resulted in a decline in the construction sector, an oversupply of housing, falling consumer spending and less exports. In 2009, Spain had the highest unemployment rate in the EU. The most important agricultural products in the Spanish economy include: grains, vegetables, olives, wine, grapes, sugar beets, citrus, beef, pork, poultry, dairy products, and fish. The most important industries for the economy of Spain are: apparel and footwear, food and beverages, metals and metal manufacturing, chemicals, pharmaceuticals, shipbuilding, automobiles, machine tools, tourism, clay and refractory Contact us Here are all the countries that don’t have a currency of their own — Quartz Not quite what we mean by printing money.

(Reuters/Umit Bektas) Share Kabir Chibber September 15, 2014 As Scotland prepares to vote on independence on Sept. 18, the future of its currency has taken center stage. For the moment, Scotland prints its own notes and uses the British pound, which is controlled by the Bank of England. (Follow?) In the event of independence, Scotland wants to continue to use the pound as part of a negotiated currency union. All three of the UK’s major parties have ruled this out. Nonetheless, the most likely outcome of a “Yes” vote involves Scotland using the pound anyway. On option: the scenario dubbed “sterlingization,” in which the world’s newest state would have pound notes and coins but no control over its monetary policy. The head of the Bank of England—who, just to make things more confusing, is Canadian—has said that if Scotland were to adopt the British pound on its own, it would need huge reserves of the currency—around 25% of its GDP, or £36 billion—to convince the rest of the world it can credibly act as a lender of last resort in the event of crisis.

Yet if Scotland were to go it alone, it wouldn’t actually be alone. There are many places that have given up control of their legal tender. Countries that only use a foreign currency US dollar: Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Turks and Caicos, British Virgin Islands, Zimbabwe. The US dollar is the most widely used currency in the world, with many countries employing it as an accepted alternative to their own currency. But some have simply adopted the currency as their own, notes and all, in what is known as “dollarization.” They don’t have control over the currency—only the Federal Reserve in Washington sets monetary policy. Both Ecuador and El Salvador adopted the US dollar in 2000, following the creation of free-trade blocs like NAFTA and the EU and the debut of the euro, making even the notion of a “ single currency for the hemisphere more plausible and attractive .” Ecuadoreans were in a rush to trade sucres for dollars when dollarization was announced.

(Reuters) “For Ecuador, adopting the dollar was a way of imposing strict fiscal discipline, in effect by turning monetary policy over to the United States Federal Reserve Board,” the New York Times reported in 2001 . Defenders of dollarization in El Salvador have said it helped to prevent economic crises and attacks from speculators that have befallen countries like Mexico and Argentina—though the cost of converting from the colon to the dollar resulted in prices being round up by fractions of a dollar, creating rising costs for the poorest Salvadorans. And is the Federal Reserve going to think about El Salvador when it slashes interest rates to near zero in the aftermath of an economic crisis and starts printing money? As we saw in 2008 and beyond: Not really, no. Scotland could become the next Norway , small and oil-rich, supporters of independence say. But it could be more like the next El Salvador. That said, Ecuador chose to issue its own coins—it wanted to avoid the problems of Zimbabwe, which found it too expensive to ship huge quantities of nickels and dimes into circulation but needed much more change , as the cost of most goods had to be expressed in fractions of dollars. Zimbabwe is a special case.

It abandoned its own currency in 2009 and currently has eight official currencies as legal tender: the US dollar, South African rand, Botswana pula, British pound sterling, Australian dollar, Chinese yuan, Indian rupee, and Japanese yen. Inflation was a minor problem with the Zimbabwean dollar. (Reuters/Philimon Bulawayo) Euro: Andorra, Kosovo, Monaco, Montenegro, San Marino, Vatican City. Following the pattern above, this must be called “euroization.” Most euro-using countries are neighbors of the European Union, like the principalities of Monaco and Andorra. Montenegro and Kosovo, two of the smallest remnants of what was Yugoslavia, changed currencies twice in less than four years; in 1999, they swapped the Yugoslav dinar for the Deutsche mark, and then each adopted the euro when the notes entered circulation in January 2002. The turnaround was pretty quick. More than 2.5 billion Deutsche marks were held in Kosovo before 2002, tucked away in mattresses because of a general distrust of banks . These all had to be converted.

In the first two weeks of use, for example, Montenegro’s central bank flew in “ two planeloads of euro notes and 40 tons of coins .” In Kosovo, 100,000 bank accounts were opened in just the last month prior to the introduction of the euro. Countries in a currency union Euro: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Calls for monetary union in Europe date back to the 1920s, but things got serious when the European Commission (of the European Economic Community, precursor to the European Union) began looking into ways to stabilize fluctuations between the their currencies in the late 1960s. In 1989, the path to monetary union was set out in the Delors report. In 1992, the Maastricht Treaty was signed, which created the EU and set up the path to the launch of the euro in 1999. In 2002, euro notes and coins entered circulation.

There are extensive criteria to join the euro, but nothing in the EU treaties about leaving it—which was unfortunate, as many countries’ finances came under severe strain in the aftermath of the 2008 financial crisis. (None more so than Greece, which at one pointed owed $250,000 for each working adult .) While the euro looked doomed for awhile, the problem was solved using one of the best traditions of capitalism: throwing more debt at the problem. Greece was bailed out—twice—and there was one bailout each for Portugal, Ireland, and Cyprus by the euro zone countries and the IMF. Spain’s banks were bailed out, too, and a 500 billion-euro fund was set up to permanently act as a firewall to prevent this from happening again. People celebrated when euro notes debuted in 2002. (Reuters/Kai Pfaffenbach) Currently, 18 countries comprising 330 million people use the euro. All the countries have given up monetary authority to the European Central Bank, which sits in Frankfurt. East Caribbean dollar: Antigua and Barbuda, Dominica, Grenada, St. Kitts and the Nevis, St. Lucia, and St.

Vincent and the Grenadines. The successor to the British West Indies dollar was created in 1976. The East Caribbean dollar is fixed to the US dollar at a rate of 2.7 to 1. The only member of the Organization of Eastern Caribbean States to not take part is the British Virgin Islands—which uses the US dollar, of course. CFA franc: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo. It may surprise you to know that 14 countries in Africa also are dependent on the euro, albeit indirectly. Strictly speaking, there are two currencies between them: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo use the West African franc. Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon use the Central African franc. Both currencies are at parity and their notes are interchangeable across all 14 countries, but they have different monetary authorities.

The CFA franc was created in 1945 to spare France’s colonies the pain that the post-World War II revaluation in the French franc would do to their much smaller economies. The CFA franc was set at fixed exchange rates against its French counterpart, and is now fixed against the euro. Alternatively… Many places both officially and unofficially allow the trade of foreign currencies alongside their own. Residents from Belize to North Korea can spend in US dollars, for example. Panama has had the US dollar as legal tender since 1904, alongside the Panamanian balboa, and was viewed as a special case in Latin America because of the Panama Canal and its huge trade links with the world’s richest country. Others are usually based on relative economic might and regional proximities; Lesotho and Namibia also use South Africa’s rand and small islands like Tuvalu and Nauru use Australian dollars. The yuan was pegged to the dollar until 2005. It has been slowly rising ever since. (Reuters/Nicky Loh) Many countries peg their currencies to another nation’s.

The Hong Kong dollar, for example, was pegged to the British pound and has been pegged to the US dollar since 1983. It trades within a band of 7.75 to 7.85 HK dollars to the US dollar. How does the Hong Kong Monetary Authority maintain its credibility as the lender of last resort? It has a whopping 120% of Hong Kong’s GDP in foreign-exchange reserves. The Chinese yuan was pegged to the US dollar until 2005 and has been a managed currency since then—much to the chagrin of the US Congress . The currency is allowed to trade up or down against a basket of currencies up to 1% each day, which was expanded from 0.5% in 2012. Many expect that the band will be widened again and that gains in the yuan will be allowed to accelerate.

Question: Prior to the introduction of the Euro which country's currency was the tolar?
Answer: SLOVENIA